2023-08-20 17:48:00
Since January 2020, next to 300 companies in the cryptocurrency sector have applied for registration with the Financial Conduct Authority (FCA), the UK financial regulator.
On this set, only 38 of them, or 13%, have obtained FCA approval. These figures, recently unveiled by the British regulator, underline the selectivity of the approach adopted in the face of the rapid development of the crypto sector.
FCA registration: A bumpy ride for crypto businesses
Since the beginning of 2020, no less than 291 companies operating in the field of cryptocurrencies have attempted to register with the main financial regulator in the United Kingdom: la Financial Conduct Authority (FCA). Yet, of this number, only 13% managed to obtain a permit to operate in the UK.
On August 11, in response to a right-to-know request – the author of which has not been revealed –, the FCA has provided details on statistics relating to the registration of companies specializing in crypto assets. It shows that of the 291 requests received since 2020, only 38 have been validated.
A large part of the requests i.e. 155 exactly, was withdrawn by the companies themselves. And for good reason, the FCA encourages these companies to resubmit their application later if all the required criteria are not met.
In this regard, the regulator said:
“Companies must comply with certain information requirements, specified by a particular regulation (Regulation 57 of the MLRs – Money Laundering Regulations). If a company does not provide all the information requested, its application for registration will be automatically refused.”
In the United Kingdom, to be authorized to carry out “activities related to cryptographic assets”, companies must either be registered with the FCA, or have obtained a temporary operational status. Recently, it should be recalled that the FCA ordered Binance Markets Limited to cease its activities in the territory.
It also issued warnings to some operators of local cryptocurrency ATMs, ordering them to cease operations or risk further action. Currently, the list of FCA-registered crypto asset providers includes 42 entitiesincluding notable names like Skrill, eToro and Gemini.
Cryptocurrency marketing strategies: the FCA is getting tough
In July, the FCA reminded all companies in the crypto asset industry nationwide of the need to adapt their marketing strategies so that they are in line with its financial promotions scheme by October 2023. Previously, she suggested cryptocurrency businesses adopt a marketing approach that includes a “reflection period” for clients, allowing them to assess the risks associated with investing in digital assets.
Faced with the rise of the cryptocurrency industry, it is clear that the FCA intends to strengthen its role as a safeguard, ensuring that market players adhere to strict standards, while protecting consumers from potential risks. Companies wishing to operate in the United Kingdom will therefore have to be particularly rigorous and transparent in their procedures.
Source : cointelegraph
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